Ratings agency Moody’s has downgraded the credit ratings of 16 Spanish banks amid continued concern over bad debts in the country’s banking sector.

The lenders included Spain’s three biggest banks: Banco Santander, BBVA, and La Caixa.
But Moody’s made no mention of struggling Bankia, which was taken over by the government on May 9.

Its share priced tumbled by almost 15 percent on Thursday after one newspaper reported that customers had withdrawn 1 billion euros from the bank since the takeover.The government and Bankia’s chief executive denied there was a run on the bank.

In cutting the banks’ ratings, Moody’s cited a renewed recession, the ongoing real-estate crisis and high levels of unemployment. It also said Spain’s ability to provide financing to support troubled lenders had been “reduced”.